CC PACKET 05241994 - Laserfiche WebLink

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MEMORANDUM DATE: May 18, 1994 TO: Larry Hamer, Interim City Manager FROM: Roger Larson, Finance Director ITEM: LEAGUE OF MN CITIES INSURANCE RENEWAL Mr. Mark Flaten of American Risk Services will be present at the May 24, 1994, Council Meeting to discuss and finalize insurance coverage for June 1, 1994 - May 31, 1995. The attached information includes price quotations for property, auto, general liability, workers' compensation and liquor liability. The cost for maintaining our present coverage of $10,000 deductible and $50,000 aggregate'totals $253,74 9. This amount represents an decrease in premiums of ($1,665) which is primarily due to a decrease in liquor liability costs ($12,261). This decrease is based upon splitting the On-Sale and Off-Sale liability coverage between two company's (Transcontinental & Britamco Underwriters). As in previous years, no other insurance companies chose to compete with the League of Minnesota Insurance Trust. However, four insurance carriers quoted on liquor liability coverage. Last year's carrier, Park Glen, is,higher than the lowest bids by $12,261. It should be noted that the "hold the line in premium costs" approach balances the 1995 insurance budget. Workers' compensation costs continue to rise. To offset the increases, in 1993 St. Anthony adopted the following workers compensation options: A. Managed Care Plan where employees who are injured on the job are assigned to a specific clinic for rehabilitation of their injury. This results in a 5% reduction in workers' comp premiums. B. $500 deductible per claim for medical costs only. This results in a 4% reduction in premiums.